August 02, 2023
$680 million arbitration cost for teacher pay boost
The Government has agreed to support the Independent Arbitration Panel’s recommendation to increase secondary teachers’ base salaries by 14.5 percent by December 2024.
Education Minister Jan Tinetti says the increase offered today would give beginner teachers an annual increase of almost $10,000, in addition up to a $7,210 lump sum payment.
It means that since Labour has been in Government teachers at the top of the pay scale would have had an increase in pay of 36 percent, compared to 10 percent in the nine years of the last National Government.
The panel’s recommendation adds an extra $680 million to the $3.76 billion already set aside in the Budget to settle teachers’ and principals’ agreements, including an increase to other education collective agreements which will flow on from this decision.
Ms Tinetti says more than half of that will come from savings, and $306 million will be pre-committed in Budget 2024.
Identified savings include Ministry of Education departmental funding, the forecast underspend from newer teachers being employed, removal of the option to bank staffing, except in kaupapa Māori and Māori medium education, and deferring the Te Ao Marama and Hobsonville Point Secondary School projects in the Public Private Partnership Schools Expansion Programme.
Additional allowances for tikanga expertise were included, as recommended by the panel, and in line with the primary teachers’ agreement.
The PPTA members will vote on the offer over the next week.